QandAs: Loans

What is a bill of sale?

Answer:
A bill of sale is a written document that transfers ownership

from one person to another. If you’re buying or selling an expensive piece of property such as an automobile or boat, a bill of sale is necessary to the transaction.

Unfortunately, selling a motor vehicle isn’t as simple as exchanging merchandise and finalizing the deal with a handshake. A bill of sale is a legal document that protects both the previous owner and the new owner of a property. Plus, this document is often used to conclude the sales tax on a vehicle.

Obtaining a bill of sale is simple. Each state has an official bill of sale, which is provided by the Department of Motor Vehicles. Property sellers can either visit DMV and request a copy, or download a form from the department’s official website.

There is no cost for a bill of sale, and most forms are available 24 hours a day. Property ownership cannot be transferred without a bill of sale. After obtaining a copy, complete the requested information such as the vehicle’s model, identification number (VIN), year, and purchase price. Once this information is completed, the new owner will submit the bill of sale to DMV and pay the vehicle tax.


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